2015 Itemization
Working with 2015 RESPA-TILA Regulations
Fee Details Window (2015 Itemization)
The 2015 Itemization Form (6:19)
The 2015 Itemization form is a detailed estimate of closing costs and other charges that must be satisfied before the loan closes. Information entered on the 2015 Itemization is also used to populate the fee entries on the Loan Estimate and Closing Disclosure input forms. Use the Highlight options to configure the types of fees that are visible on the form. Click the icon to the left of each fee entries to view the Fee Details pop-up window, where you can enter and edit detailed information about the fee.
Your administrator can set a date when all new loans will use the 2015 Itemization and the accompanying 2015 RESPA-TILA forms by default. Within a loan file, you can switch between the 2015 forms, the 2010 forms (2010 Itemization, 2010 GFE , REGZ-TIL, Closing RegZ, and HUD-1), and the pre-2010 Itemization and HUD-1 as long as you have not yet sent your initial disclosure to the borrower. Click Forms on the Encompass menu bar, point to RESPA-TILA Form Version, and then click Old GFE and HUD-1, RESPA 2010 GFE and HUD-1, or RESPA-TILA 2015 LE and CD. To view the help topic for the 2010 Itemization form, refer to the 2010 Itemization help topic. After the initial disclosure is sent, the option to switch between various versions of the forms is no longer available.
Navigation and Display
-
Use the links on the upper-right for easy access to the Disclosure Tracking tool and the various pages of the Loan Estimate (LE) and Closing Disclosure (CD) forms.
-
Use the blue Show or Hide icons (plus sign or minus signs) to show or hide the content below the headers for the numbered sections (700-1400):
-
Click the icons on the upper-right to show or hide the content for all numbered sections.
-
Click the icons at the top of each section to show or hide the content for that section.
-
As fees are entered, the section header displays the total fees paid by the Borrower, Seller, and Other, as well as the Total amount for all fees in the section.
General Guidelines
-
Type the costs and fees assigned to the borrower, seller, or both.
-
For calculated fields, the value is placed in the Borrower field. If you type a value in the associated Seller field, that amount is deducted from the Borrower value.
-
Use the checkboxes in the columns on the right to specify the characteristics of the fee.
-
If your administrator has created predefined fee descriptions for miscellaneous closing costs (fees with blank description fields) , select a description from the dropdown list. If your administrator has granted you permission, you can also type a description in the space provided.
-
The Truth In Lending requirements that went into effect on April 1, 2011 prohibit any person other than the borrower from paying compensation to a loan originator in a transaction where the borrower pays the originator directly. If your administrator has configured the LO Compensation Ruleto govern a fee being paid to a broker in line 801, a green LO Compensation icon displays next to the fee line. The LO Compensation Violation message may display any time fees are set to be paid to the broker by both the borrower and someone else other than the borrower.
-
If the Address Book icon displays next to a field, click the icon to select the provider's name from your business contacts. Or type the name in the field and, optionally, right-click to add a new contact to your business contacts.
-
Use the Edit icons to open a calculator to determine the associated field value.
Section Information
When you record costs and fees:
-
Type the amount of the fee in the Borrower or Seller columns (or both).
-
If the value in the Borrower column for lines 801 through 803 will be paid by someone other than the borrower, use the Paid By column to indicate who will pay the fee, Broker (B), Lender (L), or Other (O).
-
Select one or more checkboxes as appropriate in sections 800 through 1300.
P (Paid outside closing/Paid through closing) - All or part of the fee is being paid outside closing (POC) or paid through closing (PTC).
B (Borrower select) - The borrower has opted to locate a provider for this service. Selecting this checkbox causes both the Borrower can shop for and Borrower did shop for checkboxes to be selected on the Fee Details window for the fee. Clearing one or both of the checkboxes on the Fee Details window also clears this checkbox on the 2015 Itemization.
A (APR fees) - Borrower costs that are used to calculate the APR.
-
Use the Paid to column in sections 800 through 1300 to indicate to whom the fee will be paid.
B (Broker) - The fee is paid to the broker. The value is placed in the Paid To Broker column on the MLDS.
L (Lender) - The fee is paid to the lender (creditor).
S (Seller) - The fee is paid to the seller. The value is placed in the From GFE Seller column on the MLDS.
I (Investor) - The fee is paid to the investor.
A (Affiliate) - The fee is paid to an affiliate of the lender or the broker
O (Other) - The fee is paid to someone other than the broker, lender, seller or investor. The value is placed in the Paid To Others column on the MLDS.
-
Click the Fee Details icon
to the left of a fee entry to open the Fee Details pop-up window. Use the pop-up windowto edit the information entered in the checkboxes and the Paid to and Paid by dropdown lists described above. The Fee Details window enables you to enter more detailed information about the fees, including the entities who are paying the fee in part or in whole (Borrower, Seller, Broker, Lender, and Other), the amount paid by each entity, and the portion of the payment that falls into different payment categories (Financed, PTC, PAC, and POC). Changes made in the pop-up window are reflected on the amounts shown on the 2015 Itemization.
700
The 700 section lists the fees paid for sales agent and real estate broker commissions, including the amount to be paid to each commission recipient and the commission amounts that will be paid by the borrower and seller.
-
Use lines 701-702 to state the split of the commission where the settlement agent disburses portions of the commission to two or more sales agents or brokers. The total of lines 701 and 702 are automatically calculated based on the values entered in the associated fields in the Borrower and Seller columns.
-
Line 703 is automatically calculated based on the total of the Borrower and Seller fields for lines 701-702 and represents the amount of the sales commission disbursed at settlement.
-
Use line 704 for additional charges made by the sales agent or broker, or for a sales commission charged to the Borrower to be disbursed by the settlement agent. Enter a description of the commission fee, and then enter the recipient of the fee in the To field.
-
Use the Fee Details pop-up windows to enter details for each fee.
800
The 800 section lists origination and processing charges, origination credits, and origination points.
-
Line 801 contains the processing and administrative charges. If there are not enough lines to list all your fees, you can combine multiple fees on a single line. The total amount listed on the Our Origination Charge line will print on the Loan Estimate output form. Clear the Itemize fees when print checkbox to print the total for the 801 fees (without itemizing them) on the Itemization of Amount Financed and Addendum to Loan Estimate output forms.
-
The Truth In Lending requirements that went into effect on April 1, 2011 prohibit any person other than the borrower from paying compensation to a loan originator in a transaction where the borrower pays the originator directly. If your administrator has configured the LO Compensation Rule to govern a fee being paid to a broker, a green LO Compensation icon displays next to the fee line. The LO Compensation Violation message may display any time one of these fees are set to be paid to the broker by both the borrower and someone else other than the borrower. In other words, if one fee being paid to the broker is being paid by the borrower, then all other fees being paid to the broker must be paid by the borrower as well. Or, if one of these fees is being paid by someone other than the borrower, then all other fees paid to the broker must be paid by someone other than the borrower as well. If the LO Compensation Violation message displays, select Make all Paid by Borrower, Make all Paid by 3rd Party, or Take No Action to proceed.
-
Broker Compensation - When documenting compensation payments to the broker using the Broker Compensation line, you can select the Use LO Comp Tool checkbox to pull applicable broker compensation data from the LO Compensation tool into the Broker Compensation fields.
-
When the Use LO Comp Tool checkbox is selected, the corresponding Broker Compensation fields in sections 801 and 802 are populated with the values from the Wholesale/Broker Plan Calculations section of the LO Compensation tool.
-
In certain circumstances, the compensation percentage and flat charge populated to the 2015 Itemization will not match the corresponding values in the LO Compensation tool. In order for the total compensation amount being paid to the broker to match on the 2015 Itemization (field ID NEWHUD.X225) and the LO Compensation tool (the total Net Adjustment Comp (field ID LCP.X14)), Encompass automatically adjusts the compensation percentage (field ID NEWHUD.X223) and flat charge (NEWHUD.X224) on the 2010 Itemization. When the adjusted compensation percentage and flat charge are added together, the total (field ID NEWHUD.X225) matches the total in the LO Compensation tool (field ID LCP.X14).
-
Circumstances when this adjustment may occur include when the compensation plan is based on the base loan amount (field ID 1109) instead of the Total Loan Amount (field ID 2) or when adjustment credits are entered in the LO Compensation tool. Also, since the percentage fields in the LO Compensation tool allow for five decimal places while the percentage fields on the 2015 Itemization allow for only three decimal places, the percentage amounts will be adjusted on the form accordingly.
-
Once these values are pulled into the 2015 Itemization (and the Use LO Comp Tool checkbox remains selected), they will be automatically synchronized with the corresponding values in the LO Compensation tool. If values are changed in the tool, the values in the 2015 Itemization fields will recalculate accordingly.
-
Use the Fee Details pop-up window to enter details for each fee.
-
Use the Lender Paid Originator Compensation section to enter credits.
-
Enter the percentage and amount (if needed) of Lender Compensation Credit to the broker in line a.
-
Enter the percentage and amount (if needed) of any Origination Credit for the interest rate chosen to be paid by the lender in line b.
-
Enter a description and amount for any user-defined credits in lines c and d.
-
In the Lender Paid Originator Compensation section, a Fee Details pop-up window is available only for the Total Credit for Rate Chosen entry. Use the Fee Details pop-up windowto enter details for the fee.
If the Use LO Comp Tool checkbox is selected in section 801, applicable broker compensation data from the LO Compensation tool is populated to the Lender Paid Originator Compensation fields.
-
-
Use the Origination/Discount Points Adjustments section to enter charges.
-
Enter the Origination points on line e. Use the Seller column to enter the seller paid portion as needed.
-
Select the Bona Fide checkbox to indicate that discount points entered in the Origination/Discount Point Adjustments section are bona fide discount points for the purposes of the Encompass Compliance Service’s applicable high cost review or GSE point and fees threshold review. Note that the Encompass Compliance Service is currently supported in Encompass Banker Edition only.
-
Enter a description and amount for user-defined adjustments in lines f, g, and h.
-
Use the Fee Details pop-up window to enter details for each fee.
In line a, the Paid by column is always paid by the Lender and the Paid to column is always paid to the broker.
-
When you finish entering credits and charges, the total credits display in the Total Credit for Rate Chosen field (NEWHUD.X1149) and the total charges display in the Total Charge for Rate Chosen field (NEWHUD.X1165).
Lines 803-833 display fees for third-party settlement services (except title services) required and selected by the loan originator. These fees cannot increase after the Loan Estimate has been disclosed.
For USDA loans, line 819 is reserved for the USDA Guarantee Fee. For non-USDA loans, line 819 can be used for other purposes.
If you use loan templates, make sure the templates do not populate a miscellaneous fee to line 819. Fees entered on this line will be overwritten when the USDA Guarantee Fee is calculated for a USDA loan.
Lines 834 and 835 are reserved for services that are not borrower obligated. These fees are not disclosed on the Loan Estimate.
Use the Fee Details pop-up windows to enter details for each fee.
900
Fees for items which the lender requires to be paid at the time of settlement, but which are not necessarily paid to the lender (for example, FHA mortgage insurance premium for the upcoming year), other than reserves collected by the lender and recorded in the 1000-series.
-
Select the Display Daily Interest to 2 Decimals checkbox to round and truncate the daily prepaid interest to two decimal points when the amount is populated on line three on the Loan Estimate Page 2 and the Closing Disclosure Page 2.
-
Under RESPA regulations, lines 902 and 905 are subject to tolerance limits for fees that cannot increase more than 10% after the Loan Estimate has been disclosed.
-
If the borrower has the option of selecting a provider for a service, a checkbox displays in the B (Borrower Select) column. If you select the checkbox to indicate that the borrower will select a provider (or if you select the Borrower did shop for checkbox in the Fee Details window) the fee is not subject to the tolerance limits for fees that cannot in total increase more than 10% after the Loan Estimate is disclosed.
-
Property taxes entered in line 904 are automatically categorized as property taxes.
-
Homeowner's insurance and flood insurance from lines 903 and 906 are populated as separate line entries on the Fee Variance Worksheet in the Charges that Can Change section and the fee amounts are adjusted as appropriate in the Initial LE, LE Baseline, CD Baseline, and Itemization columns on the Fee Variance Worksheet when fees are adjusted on the 2015 Itemization and when disclosures are sent.
-
Use lines 907-912 to enter miscellaneous prepaid fees for homeowner's insurance and other services paid at the time of settlement, but not necessarily paid to the lender. Enter a description, the recipient of the fee, the number of months the fee will be paid, and the monthly amount.
-
Use the Fee Details pop-up windows to enter details for each fee.
1000
Amounts collected by the Lender from the Borrower and held in an account for the future payment of the obligations listed as they fall due. This may be referred to as an ''escrow'', ''impound'', or ''trust'' account. In addition to the property taxes and insurance, some Lenders may require reserves for flood insurance, condominium owners' association assessments, etc.
On the 2015 Itemization, use the 1000 section to record any fee that could potentially be escrowed, for example HOA fees.
-
For Line 1001, the three checkboxes are selected based on selections made in the Fee Details windows for other line entries in the 1000 section.
-
For lines 1002 through 1009, use the Fee Details pop-up windows to select the recipient and payer for each fee. Encompass captures and identifies the recipients of fees for Escrow Impounds and these values are considered when making an ATR/QM and HOEPA points and fees assessment.
-
For lines 1007, 1008, and 1009, one of the following checkboxes is always selected: Property Taxes, Homeowner's Insurance, or Other.
-
Only one of these checkboxes can be selected at a time. Selecting one of these checkboxes clears the other selections.
-
The Other checkbox is selected by default and can only be cleared by selecting the Property Taxes or Homeowner's Insurance checkbox.
-
Clearing the Property Taxes or Homeowner's Insurance checkbox causes the Other checkbox to be selected.
-
Use the Fee Details pop-up window to enter details for each fee and to select the Escrowed checkbox for each fee as appropriate. The escrow selections are copied to the Aggregate Escrow Account form and are then used to populate the Projected Payments section on the Loan Estimate Page 1 and Closing Disclosure Page 1. The following table shows how the 1000 section fees map to fees in the Aggregate Escrow Account form.
| 2015 Itemization | Aggregate Escrow Account | |
|---|---|---|
| Line 1004 - Property Tax | Tax | |
| Line 1002 - Homeowner's Insurance | Hazard Insurance | |
| Line 1006 - Flood Insurance | Flood Insurance | |
| Line 1005 - City Property Tax | City Property Tax | |
| Line 1007 - Free Entry 1 | Free Entry 1 | |
| Line 1008 - Free Entry 2 | Free Entry 2 | |
| Line 1009 - Free Entry 3 | Free Entry 3 | |
| Line 1010 - USDA Annual Fee | USDA Annual Fee |
After Aggregate Escrow Setup is run for the loan, the resulting escrow information overwrites the previous escrow selections. The new escrow selections are copied back to the Fee Details windows and the Escrowed checkboxes in the Fee Details windows are no longer editable.
-
Lines 1002 and 1004-1010 are mapped to section G on page 2 of the Loan Estimate and Closing Disclosure only if the Escrowed checkbox is selected in the Fee Details window.
-
For a USDA loan, selecting the Escrowed checkbox on the Fee Details window for the USDA Annual Fee on Line 1010 causes the fee to be listed as Mortgage Insurance in section G line 2 on page 2 of the Loan Estimate and Closing Disclosure.
1100
Fees collected by the lender for title charges and charges by attorneys and closing or settlement agents, and then distributed
to outside service providers.
If there are not enough lines to enter all the fees, you can combine multiple fees on one line.
-
The fees in the 1100 section are subject to the tolerance limits for fees that cannot increase more than 10% after the Loan Estimate is disclosed.
-
If the borrower has the option of selecting a provider for a service, a checkbox displays in the B (Borrower Select) column. If you select the checkbox to indicate that the borrower will select a provider, the fee is not subject to the tolerance limits for fees that cannot in total increase more than 10% after the Loan Estimate is disclosed.
-
On line 1101, the read-only totals at the top of the columns includes the amounts from the six entries in the line 1101 section only.
-
Clear the Itemize fees when print checkbox at the bottom of line 1101 to print the total amount for line 1101 fees (without itemizing them) on theItemization of Amount Financed and Addendum to Loan Estimate output forms.
-
With the exception of lines 1105-1108, use the Fee Details pop-up windows to enter details for each fee.
-
Charges enter in the 1100 section display on the Loan Estimate Page 2 and Closing Disclosure Page 2 preceded by “Title –”. You do not need to type the designation in the fee description.
-
Lines 1115 and 1116 are reserved for charges that are not borrower obligated. These charges are not disclosed on the Loan Estimate.
1200
Fees collected by the lender for government recording and transfer charges, and then distributed
to local and state agencies.
-
For lines 1202, 1204, and 1205, click an Edit icon to itemize an entry.
-
For lines 1204 through 1208, click a Find icon to select predefined formulas to calculate the associated field.
-
Line 1201 includes the total of line 1202 and 1206-1208, and is subject to tolerance limits for fees that cannot in total increase more than 10% after the Loan Estimate is disclosed.
-
Lines 1203-1205 display taxes that cannot increase at all after the Loan Estimate has been disclosed.
-
There are three possible behaviors for lines 1202 and 1204-1208:
-
If the Edit or Find icon is not used to calculate or select a fee, users can enter any amount in the Borrower and Seller columns without affecting the amounts in the other fields for that fee.
-
If the Edit or Find icon is used to calculate or select a fee:
-
If the fee is zero, the Borrower and Seller columns are blank. Entering an amount in one of the columns results in a negative value being populated in the other column.
Example 1:If the fee is zero, the Borrower and Seller columns are blank.
Example 2: If 100.00 is entered in the Seller column, -100.00 is populated in the Borrower column.
-
If the fee is greater than zero, the amount is populated to the Borrower column. If the Borrower column is adjusted or an entry is made in the Seller column, the amount in the other column is recalculated so that the total of the two columns equals the fee amount.
Example 1: If the calculated fee is 100.00, then 100.00 is entered in the Borrower column.
Example 2: If the calculated fee is 100.00 and a user changes the Borrower column to 25.00, the Seller column is adjusted to 75.00.
Example 3: If the calculated fee is 100.00 and a user enters 125.00 in the Seller column, the Borrower column is adjusted to -25.00.
-
-
-
Lines 1209 and 1210 are reserved for charges that are not borrower obligated. These charges are not disclosed on the Loan Estimate.
-
Use the Fee Details pop-up windows to enter details for each fee.
1300
Charges and other miscellaneous fees not already recorded in sections 800
through 1200.
-
Line 1301 displays the total for all fees in this section that are subject to tolerance limits for fees that cannot in total increase more than 10% after the Loan Estimate is disclosed.
-
Select the checkbox in the B (Borrower Select) column to indicate that the borrower will select a provider for any of the services in lines 1302-1309. If the borrower opts to select a provider, the fee is not included in line 1301 and is not subject to the tolerance limits.
-
Charges entered in lines 1301-1309 display in Section C (Services You Can Shop For) on the Loan Estimate Page 2 and in sections B (Services Borrower Did Not Shop For) or C (Services Borrower Did Shop For) on the Closing Disclosure Page 2, depending on whether the borrower actually did or did not shop for the service after the Loan Estimate was disclosed.
-
Charges entered in lines 1310-1315 display in Section H (Other) on the Loan Estimate Page 2 and the Closing Disclosure Page 2. These fees are not associated with the loan costs and are not included in line 1301.
-
Use the Fee Details pop-up windows to enter details for each fee.
1400
The total of all the estimated settlement charges for the borrower and seller, and the total amount of all fees that are financed as part of the loan.
This section summarizes the costs recorded in sections 800 through 1300. The calculations are based on the payment designations for each line item.
The total of all seller-paid amounts for fees minus the seller obligated-portion of the fee.
The total of all closing costs recorded in the Borrower column not marked as paid by Broker (B), Lender (L), or Other (O), and not checked as Paid Outside of Closing (P). To record a lump sum (instead of itemizing the costs), click the Lock icon to lock the field. You can then type a value that will not be overridden by a calculation.
The total of all closing costs entered in the Seller column not checked as Paid Outside of Closing (P). To record a lump sum (instead of itemizing the costs), click the Lock icon to lock the field. You can then type a value that will not be overridden by a calculation.
The total of all closing costs entered in the Borrower column that are marked as paid by Broker (B), and not checked as Paid Outside of Closing (P). To record a lump sum (instead of itemizing the costs), click the Lock icon to lock the field. You can then type a value that will not be overridden by a calculation.
The total of all closing costs entered in the Borrower column that are marked as paid by Lender (L), and not checked as Paid Outside of Closing (P). To record a lump sum (instead of itemizing the costs), click the Lock icon to lock the field. You can then type a value that will not be overridden by a calculation.
The total of all closing costs entered in the Borrower column that are marked as paid by Other (O), and not checked as Paid Outside of Closing (P). To record a lump sum (instead of itemizing the costs), click the Lock icon to lock the field. You can then type a value that will not be overridden by a calculation.
Total Non-Borrower Paid CC (b)
The total of the closing costs paid by the Seller, Broker, Lender, and Other and not checked as Paid Outside of Closing (P). To record a lump sum (instead of itemizing the costs), click the Lock icon to lock the field. You can then type a value that will not be overridden by a calculation.
The total of all Borrower and Non-Borrower paid closing costs that are not checked as Paid Outside of Closing (P).
Click the Other Summaries button to access the following additional summary information. The information in these fields is calculated based on information in the Fee Details windows on the 2015 Itemization.
Total Prepaid Finance Costs (APR)
The total of all closing costs paid by the Borrower, Broker, or Other that have the Impacts APR checkbox selected in the Fee Details windows.
Total Paid Outside of Closing (POC)
The total of all closing costs paid by the Borrower, Seller, Broker, Lender, or Other that are listed in the POC column in the Fee Details windows. These values are not used in the calculation of closing cost totals.
Total FHA Borrower Paid Closing Costs
The total of all closing costs listed in the Borrower Amount Paid field in the Fee Details windows (except line 802e discount points). To record a lump sum (instead of itemizing the costs), click the Lock icon. You can then type a value that will not be overwritten by calculations.
Total FHA Seller Paid Closing Costs
The total of all closing costs listed in the Seller Amount Paid field in the Fee Details windows. To record a lump sum (instead of itemizing the costs), click the Lock icon. You can then type a value that will not be overridden by calculations.
Total Costs Paid to Broker (PTB)
The total of all closing costs listed in the Broker Amount Paid field in the Fee Details windows.
Total Closing Costs Paid to Other (PTO)
The total of all closing costs listed in the Other Amount Paid field in the Fee Details windows.
The total of all closing costs listed in the Borrower Financed field in the Fee Details windows.
Total Estimated Monthly Payment
The proposed monthly housing expenses as entered on page 2 of the 1003.
Total Estimated
Funds Needed to Close (Details of Transaction)
A summary of the borrower's estimated charges and credits. The charges are then subtracted from the credits to determine the additional funds due from, or surplus funds owed to, the borrower. Most of the fields in this section are filled from entries on other forms.
To Complete the Entries:
-
Use the four fields under line l to record additional credits due to the borrower.
-
Click the Edit icon open a calculator to determine upfront and monthly mortgage insurance and funding fees, if applicable. For detailed instructions, refer to Calculating Mortgage Insurance Premiums.